“The US Federal Reserve and European Central Bank may go their separate ways if Middle East unrest provokes a sustained, inflationary oil price spike. Crude prices creeping back into the triple digits have sparked concern about slower economic growth and will no doubt reignite two long-running monetary policy debates: Should central banks have a single inflation-fighting mandate, as the ECB does, or dual goals of price stability and full employment, like the Fed? Should policymakers focus on headline inflation rates or strip out volatile food and energy prices?” Read more.
“Oil Spike May Drive Fed, ECB Split”
Moneycontrol, February 28, 2011.
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